It has been a leaden start to the year for the car industry, where, among other things, March was one of the worst months in recent times.
It happened after last year was already a pretty bad year.
The Information Council for Road Traffic (OFV) presented new figures on Monday that show how big the upheaval is. They have not only looked at how many cars are sold, but also their value.
Read also: The Chinese cars are struggling in Norway, but: – Takes the breath away from both the one and the other
Not quite so bad on the surface
Although the report apparently shows figures that are better than feared, the reality is far worse than it appears.
The main figures show that in the first three months of the year, 22 per cent fewer cars were sold than in the same period last year. The value of the cars was “only” reduced by 20 percent – corresponding to a decrease of NOK 3.2 billion.
At a slightly higher average price, it may seem at first glance that Norwegians are once again open to buying more expensive cars.
Worse than it seems
But there is a truth with modifications:
The first quarter of last year was a very special period. In December 2022, a new record was set for new cars on Norwegian roads, after the industry went to exceptional lengths to register as many cars as possible before increased car taxes from the New Year.
There were therefore artificially few cars that were registered after the New Year last year. Those that were actually registered were largely the cheap ones that were not badly affected by the tax change. This was followed by a promotional stunt from Tesla that pulled down average prices.
Price increase on cars
For 2024, the fees are even higher, which pushes car prices up. On top of that, the krone exchange rate has weakened significantly, which makes cars more expensive to import.
OFV’s figures therefore show that list prices are actually increasing for comparable cars.
The reality is therefore that many fewer cars are sold, and that we choose cheaper variants for which we pay a higher price.
– Strong price increases for goods and services, in combination with several interest rate increases, have contributed to greater uncertainty and financial challenges for many. It has given more caution when making large investments, which is often the case with new car purchases, says sales manager Magnus Lundberg at the Road Traffic Information Council (OFV), in connection with the presentation of the Value Report.
According to the report, the proportion of cars worth over NOK 600,000 has fallen from 37.9 to 23.8 per cent from 2022 to the first quarter of this year.
– The market is more characterized by moderation, and many people buy smaller and more affordable cars than just a few years ago. This is evident in the registration statistics. In addition, there are some who keep the car they have for a little longer, or perhaps choose a used car rather than a brand new one. The momentum in the second-hand market remains fairly stable, says Lundberg.
The top list
A look at the list of best-selling cars in the first quarter shows that the time is almost over for more expensive cars among the best sellers. Among other things, Nissan’s Leaf – which should actually have been taken out of production – has made it onto the top 10 list.
- Tesla Model Y
-
Toyota bZ4X
- Volkswagen ID. 4
-
Hyundai Kona
- Volvo EX30
-
Nissan Leaf
-
MG MG4
-
Audi Q4 e-tron
-
Nissan Ariya
- Volkswagen ID. 3
Also read: Car sales are surprising: – Much has been turned upside down
Light in the tunnel
Although the sales are not all over the world, OFV states that they stand by their estimates that around 125,000 cars will be sold a year. That is significantly more than the most pessimistic who have said that they expect fewer than 100,000 cars.
The message from several of the large importers is that things are getting better. There are also a number of new cars on the way. Last Monday, Bertel O. Steen announced that they are betting that their new Citroën e-C3 will be able to become Norway’s cheapest electric car with a price of under NOK 210,000.
Also read: Will be Norway’s cheapest car – and it’s not Chinese
